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V1536-18 6 June 2018 · SG de Impuestos sobre el Consumo Criterion in force
IVA · entrega de bienes

10% VAT applies to sweet table assembly due to goods delivery

A consultant decorating pre-prepared pastries asks about the applicable VAT rate. The DGT determines her activity constitutes a goods delivery, not a catering service provision.

The question raised

Question raised - Value Added Tax rate applicable to the operation.

The DGT's ruling

Catering operations are considered the provision of services unless the company limits itself to the mere supply of standardized meals without other complementary services. In that case, they are considered supplies of goods. The supply of freshly prepared meals or food ready for consumption is a supply of goods when the accompanying service elements are irrelevant. Therefore, the applicant's activity is a supply of goods with a tax rate of 10%.

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